Home Loan Refinance
Home loan refinance applications are coming in like never before.
Interest rates for fixed rate mortgages have been falling lately, and the trend has continued according to last week’s data. The Mortgage Bankers Association reports that in the past week the average interest rate for 30 year mortgages had decreased by 0.05%, from 4.60% to 4.55%.
The data is similar for the interest rates for 15 year mortgages, which have decreased by 0.08%, from 3.99% to 3.91%. These interest rates are some of the lowest interest rates in the past twenty years.
These low interest rates are spurring more activity in the mortgage industry, and more specifically in refinancing. The Mortgage Bankers Association has reported an unusually high volume of home loan refinance applications.
Refinancing is responsible for the bulk of the increases in mortgage loan applications. The current Refinance Index is at its highest peak since May 1, 2009.
The correlation between lower interest rates and an increase in loan and refinancing applications is not by chance. Consumers are reacting to the lower interest rates and are beginning to give refinancing their mortgage a serious consideration. For most consumers, the rates are now so low that there is a high incentive for them to refinance their mortgage.
Photo credit: The Truth About Mortgage
